The advantages and disadvantages of Amazon FBA and the issue of tariff calculation
本站 立递网 2023-08-27 21:59:57
1、 Advantages and disadvantages of Amazon FBA
The full name of FBA is Fullfillment By Amazon, which is translated as Amazon Logistics in Chinese. It is a one-stop logistics service provided by Amazon that includes warehousing, picking and packaging, delivery, payment collection, customer service, and return processing.
Advantages of FBA: 1. Improve listing ranking, help sellers become feature sellers and grab shopping carts, increase customer trust, and increase sales 2. Years of rich logistics experience, with warehouses all over the world and intelligent management 3. Delivery time is extremely fast (most warehouses are close to the airport) 4. 7 * 24-hour Amazon professional customer service 5. Erase negative feedback disputes caused by logistics 6. Exempt all FBA logistics fees for products with a unit price exceeding 300USD
Pain points of FBA: 1. Generally speaking, the cost is slightly higher than domestic shipments (especially for FBA shipments on non Amazon platforms), but it also depends on the weight of the product 2. Poor flexibility (common weakness of all overseas warehouses, but other third-party overseas warehouses can still have dedicated Chinese customer service to handle some issues, while FBA can only communicate with customers in English and reply via email in a less timely manner) 3. FBA warehouse will not provide customs clearance services for sellers' first shipment 4. If the preliminary work is not done well, problems with label scanning will affect the storage of goods and even prevent them from entering the warehouse 5. The return address only supports the United States (if you are an FBA for a US site) 6. Customers can return goods if they want without much communication with FBA (returns are too casual, causing a lot of trouble for sellers) Additionally, FBA does not accept services for the following products:
If the seller's FBA product involves the following content, Amazon will not conduct FBA shipment or return such goods to the seller once discovered, and Amazon has the right to destroy such products.
1. Products prohibited for sale on Amazon. com
2. Gift cards, gift certificates and other stored value instruments
3. Extremely large or heavy products
4. Damaged or defective Units Note: Used condition products may have damage as long as the product is labeled with the appropriate condition
5. Products that have been Illegally replicated, reproduced, or manufactured (illegally copied or produced products)
6. Product that does not comply with any agreement between Amazon and Seller
Reference points for customs tariffs in cities around the world UK threshold: £ 15 Composition of comprehensive tariffs: VAT+DUTY+ADV (customs clearance fees) VAT=(Value of goods (declared to customs)+Freight+DUTY) X 20% DUTY=Value of goods X Product tax rate Australian threshold: 1000 Australian dollars Composition of comprehensive tariffs: DUTY+GST+ADV (customs clearance fees) GST=UK VAT (value declared to customs)+freight+DUTY) X 10% DUTY=Value of goods X Tax rate US threshold: $200 Composition of comprehensive tariffs: DUTY+ADV DUTY=Value of goods X Tax rate EU threshold: 22 euros Composition of comprehensive tariffs: VAT=(Value of goods (declared to customs)+Freight+DUTY) X 19% DUTY=(value of goods+shipping cost 70%) X product tax rate The threshold for Swiss tariffs is 100 Swiss francs. (Switzerland is not a member of the European Union and is a neutral country) Basic tax rate/WTO tax rate Here, WTO refers to the MFN (most favored nation) tariff rate, which is the tariff rate enjoyed by a country's imported products from its most favored nation. Countries with bilateral or multilateral trade agreements adopt the most favored nation treatment, which is an important provision in the General Agreement on Tariffs and Trade. According to this provision, the current and future trade preferences, exemptions, and privileges granted by contracting parties to third countries are also given to the contracting party, reflected in tariffs, namely the most favored nation tax. This form of tariff reduction is reciprocal. Nowadays, trade between member countries of the World Trade Organization applies the most favored nation tax rate, which is a normal tax rate. Generally, preferential tariffs under the Generalized System of Preferences and free trade zones are based on WTO tariffs for tariff reduction. Basic tax rate: Tariffs used as the core and starting point of preferential base in some ASEAN countries' preferential arrangements. Preferential tariff rate: Refers to the preferential tariff rate lower than the ordinary tariff rate levied on imported goods from a specific beneficiary country. Preferential tariffs are generally mutually beneficial, and through international trade or tariff agreements, both parties to the agreement provide preferential tariff treatment to each other; But there are also unilateral preferential tariff treatments that give the beneficiary country a one-way preferential tariff treatment, without requiring reverse preferential treatment, such as preferential tariffs under the Generalized System of Preferences; The World Trade Organization implements multilateral universal most favored nation preferential tariffs, with any contracting party granting them to all contracting parties. At present, there are two types of preferential tariffs: the GSP preferential range and the free trade zone preferential range.
